Younger Generations Lead in Home Loans

Stock Young Couple Takes Selfie In New Home

There is a growing youth movement when it comes to purchasing home loans. As the younger generations of Alaskans are getting older, they’re leaving their parents’ homes, getting away from renting, and looking to buy a house.

For several years now, Millennials (individuals born between 1981 and 1996) have been the largest generational category of AHFC borrowers. As an example, in 2021 there were 809 individuals who fit into the Millennial category and were the primary borrower of an AHFC home loan. That compared to 453 loans from the second-largest generational category, Gen X (born between 1965 and 1980).

However, it is the youngest generational group that is starting to see the most movement. Only a portion of Gen Z (born between 1997 and 2012) is even eligible to qualify for a home loan – 18-years-old is the minimum – yet so far in 2022 Gen Z has 117 individuals listed as primary borrowers for home loans. That represents the same number as Boomers (individuals born between 1946 and 1964). And through September of this year there is a 38% increase from all of 2021 in the number of Gen Z primary borrowers.

Generational Home Loan Infographic

First-Time Homebuyers Moving Up

Many of these Millennial and Gen Z borrowers are first-time homebuyers. This coincides with a national trend that has seen first-time homebuyers successfully returning to the market. In October, Zillow noted in its 2022 Consumer Housing Trends Report that first-time homebuyers represented 45% of all buyers, an 8% increase from the previous year.

While low inventory and high interest rates have increased the costs of buying a home and slowed the number sold nationally, higher costs are not deterring first-time buyers as much as established homeowners. This is due in part to the fact many first-time buyers are already paying expensive rents, so high housing costs are something they’re used to managing.

Resources for First-Time Buyers

If you’ve never owned a home but are thinking about joining the ranks of first time buyers, here are some guides that can help you in the journey.

Homebuyer Education

Alaska Housing offers free homebuyer education courses, which can help first-time buyers understand the process and get answers to questions. Learn more about our programs and how to sign up.

Find a Lender

Alaska Housing works closely with lenders across the state who understand the needs of Alaskans. Contact one of our featured lenders, who can help find the right loans for you and get you prequalified.

First-Time Homebuyer Loans

Alaska Housing offers loans specifically for first-time home buyers. Learn more about the options available.